Changes to tax credits: calculate what it will mean for your family
Changes to tax credits, announced by Chancellor George Osborne in his 2010 Budget, come into effect this month (6 April 2011) and will cost some families hundreds, if not thousands, of pounds - the average pay-out up to now has been around £3,500 a year.
The main changes if you claim Child Tax Credit are that the household income limit is dropping from £50,000 to £40,000. So if your income is over the new limit, the basic Child Tax Credit payment of £545 will be cut. Plus, the amount of state help you can get with your childcare costs is also dropping, from 80% to 70%. The HMRC has detailed information about all the changes to tax credits.
Use the calculator (below) to work out how your family's income will be affected. (Thanks to the TUC for providing it.)